692
PUBLIC LAW 85-699-AUG. 21, 1958
[72 S T A T.
(3) to make contracts; (4) to sue and be sued, complain, and defend in any court of law or equity; (5) by its board of directors, to appoint such officers and employees as may be deemed proper, define their authority and duties, fix their compensation, require bonds of such of them as it deems advisable and fix the penalty thereof, dismiss such officers or employees, or any thereof, at pleasure, and appoint others to fill their places; (6) to adopt bylaws regulating the manner in which its stock shall be transferred, its officers and employees appointed, its property transferred, and the privileges granted to it by law exercised and enjoyed; (7) to establish branch offices or agencies subject to the approval of the Administration; (8) to acquire, hold, operate, and dispose of any property (real, personal, or mixed) whenever necessary or appropriate to the carrying out of its lawful functions; (9) to act as depository or fiscal agent of the United States when so designated by the Secretary of the Treasury; (10) to operate in such area or areas as may be specified in its articles of incorporation and approved by the Administration; and (11) to exercise the other powers set forth in this Act and such incidental powers as may reasonably be necessary to carry on the business for which the company is established. (e) The board of directors of each small business investment company shall consist of nine members who shall be elected annually by the holders of the shares of stock of the company. CAPITAL STOCK A N D SUBORDINATED
DEBENTURES
SEC. 302. (a) Each company authorized to operate under this Act shall have a paid-in capital and surplus equal to at least $300,000. I n order to facilitate the formation of small business investment companies, the Administration is hereby authorized, notwithstanding any other provisions of law, to purchase the debentures of any such company in an amount equal to not more than $150,000. Any debentures purchased by the Administration under this subsection shall be subordinate to any other debenture bonds, promissory notes, or other obligations which m a j be issued by such companies, and shall be deemed a part of the capital and surplus of such companies for purposes of this section and sections 303(b) and 306 of this Act. (b) Shares of stock in small business investment companies shall be eligible for purchase by national banks, and shall be eligible for purchase by other member banks of the Federal Keserve System and iionmember insured banks to the extent permitted under applicable State law; except that in no event shall any such bank hold shares in small business investment companies in an amount aggregating more than 1 percent of its capital and surplus, (c) The aggregate amount of shares in any such company or companies which may be owned or controlled by any stockholder, or by any group or class of stockholders, may be limited by the Administration. BORROWING POWER
SEC. 303. (a) Each small business investment company shall have authority to borrow money and to issue its debenture bonds, promissory notes, or other obligations under such general conditions and
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